Reborn in 08, a heretical cultivator starting a business

Chapter 178 Water Purifiers, Dishwashers, Robotic Vacuum Cleaners: Differentiated Competition!
If you install a screen on the water purifier in your community, you can even display advertisements!
Whether it's earning advertising fees from third-party companies or driving traffic and revenue for Vipshop and community group buying, it's all incredibly profitable!
The 3G era will arrive next year, and future mobile phones will be available on the market.

If Smart Home acquires a large number of water purifiers in residential communities in the future, launching WeChat QR code payment later will not be a problem at all.

Direct access to future community water purifiers – simply scan a QR code with WeChat to dispense water!
At that time, the number of WeChat and WeChat Pay users, future mobile phone sales, future revenue from community water purifiers, and even revenue from Vipshop and community group buying will all see significant growth.

This combination of tactics is something that even competitors would find difficult to replicate!
More importantly, no companies are currently making water purifiers for residential communities, so these are untapped markets.

Wang Junshan will gradually advance his project next year, with absolutely no competitors!
Especially in the north, where the water is hard, water purifiers and community water purifiers are a necessity.

Once you've tasted it, you simply can't drink tap water with excessive limescale.

It will be difficult for the water purifier industry not to become a major player in the future.

Competing with the three giants—Haier, Midea, and Gree—in the refrigerator, washing machine, and air conditioner sectors will be quite challenging.

However, in emerging fields such as water purifiers, dishwashers, and robot vacuum cleaners, where there are no untapped markets, there are no competitors.

At that time, giants like Haier and Midea will have to turn the tables and be defeated by the future of smart homes.

Just like the stones, Ecovacs, Narwal, and others from the past, trying to make refrigerators, washing machines, and air conditioners is a dead end.

However, in emerging fields such as robotic vacuum cleaners and floor scrubbers, the three major white goods manufacturers are no match for them.

Including this Little Duck washing machine, if Wang Junshan hadn't had a few trump cards and wanted to revitalize Little Duck, he would have had a hard time winning.

However, since washing machine production is to be expanded, and water purifiers, dishwashers, and robot vacuum cleaners will also be launched later, then the industrial park for smart homes in the future can be planned to be much larger!
Jeju Island is very suitable for developing the electrical appliance industry.

Shandong Province has all kinds of categories, it lacks nothing, it can be completely integrated.

And the Little Duck washing machine is the beginning of the future smart home!
Therefore, the next day, Wang Junshan returned to Jeju Island and went straight to the duck farm.

"Chairman, thank you so much!"

"You are the duckling's savior! You saved the duckling, and you saved us!"

As soon as Wang Junshan arrived at the factory, Li Ming and the management team were already waiting at the entrance to warmly welcome him.

Several long-time employees were moved to tears.

Layoffs are happening everywhere during the financial crisis.

Being able to keep your job and avoid being laid off is already a good thing.

Thanks to Wang Junshan, not only do people avoid unemployment, but their incomes can also increase.

How could I not be moved?

Wang Junshan waved his hand: "You're too kind, everyone. Now that I've acquired Little Duck, I have to be responsible for Little Duck and for everyone. I'll make Little Duck bigger and stronger, and bring it back to its peak!"

There was warm applause at the scene.

"Since everyone's here, let's go have a meeting!"

"Chairman, please, everything is ready," Li Ming said with a smile.

The group arrived at the conference room.

Wang Junshan looked around at everyone: "In the past, inventory was the biggest problem for Little Duck. We had goods, but we couldn't sell them."

"Right now, production capacity has become the biggest problem for Little Duck. We have orders, but no goods!"

Everyone nodded in agreement. The inventory of more than 70,000 units that had been stockpiled was basically sold out.

The 20,000 washing machines produced in the last few days were all sold out on the 2nd, leaving a shortage of 10,000 units.

Even if we include all four thousand units produced today, it still won't be enough.

The problem is that today's sales are also quite good, exceeding 10,000 units.

This is quite awkward, with daily sales of over 10,000 units and daily production of 4,000 units.

There is a huge shortage every day.

Wang Junshan frowned: "What's the current production capacity? Has it reached its limit?"

Li Ming nodded: "Currently, there are three low-end semi-automatic twin-cylinder production lines, with a single line capacity of about 300,000 units. Although they are Panasonic production lines, they are already quite outdated. The total annual capacity is 900,000 units, which is currently at its limit."

"We have two fully automatic pulsator washing machine production lines with a total annual capacity of 60 units. We use imported inverter motors from Sanyo, which are relatively expensive and have reached their maximum production capacity."

"There is one drum washing machine production line, which was imported from Italy. Now it is used to produce 10-kilogram drum washing machines, with an annual output of 20 units, which has reached its limit."

"To be honest, these production lines, except for the roller production line, are quite advanced. They can produce 10-kilogram household rollers and 20-kilogram commercial rollers."

"The fully automated impeller production line is already quite outdated, and the three semi-automatic twin-cylinder production lines are even more outdated."

"If we want to further increase production capacity, we need a comprehensive upgrade."

“A two-cylinder production line only requires an investment of five million yuan, which can increase production capacity by 25%, but it requires a three-month shutdown.”

"The pulsator production line needs an investment of 800 million yuan to upgrade, increasing capacity by 30%, which will take 4 months."

“An investment of 1200 million yuan can also upgrade the roller production line, increasing capacity by 40%, which takes 5 months.”

Wang Junshan waved his hand: "We're already overwhelmed with orders even if we don't stop production, how can we have time to stop?"

"Aren't there still many empty workshops? How much would it cost to directly introduce a new production line?"

"If we introduce the pilot production line from Xishi, a fully automated pulsator production line would cost 1500 million yuan per line, with an annual output of 40 units and an automation rate of 80%. This would greatly reduce the need for manpower and could be put into production within five months."

"For roller drum production lines, domestic production can't keep up, so we have to import them."

"A Dürr production line in Germany costs 3000 million yuan per line, with an annual output of 20 units, an automation rate of 90%, and a yield rate as high as 98%! Due to import issues, it takes several months for the goods to arrive, and it takes about nine months to start production!"

"As for twin-cylinder engines, I don't recommend introducing them. Their market share is constantly decreasing, and they will be phased out in two years."

Wang Junshan nodded: "Yes, we can continue to use these three twin-cylinder engines. We should focus on production as soon as possible. The rural appliance subsidy program can only last for another two years, so there is really no need to increase production."

"Pulsator rollers have been the main sales driver in recent years. We introduced five pioneering production lines, reducing the unit price to 1200 million yuan, for a total of 6000 million yuan. The province can apply for a 20% subsidy for technological upgrades, which is 4800 million yuan."

"The roller press cost 2500 million, and we introduced four Dürr production lines, totaling 1 million, which was 8000 million after subsidies."

"With the current economic crisis, they're having a tough time, so they're going to drive prices down as much as possible."

"We will also import relevant core technologies that are needed and keep prices low."

"We should poach the top engineers from Siemens and Sanyo, if we can!"

"money is not a problem!"

"Little Duck not only needs a comprehensive upgrade of its production line, but also a comprehensive upgrade of its technology, and it needs to increase investment in research and development!"

"Yes!" Everyone was shocked.

It's clear that Wang Junshan is aiming for significant growth and expansion.

Like Little Swan, which was on the verge of bankruptcy just two years ago, just like Little Duck.

With the resource and financial support from Midea, it exploded!

In two more years, we'll be able to compete with Haier.

There's nothing we can do; these days, consumers only care about brands.

Although Little Swan and Little Duck were on the verge of bankruptcy a few years ago, they were both very successful before 03, and were the three giants.

This deeply ingrained impression is a guarantee of sales.

Even the basic washing machines from Little Duck, which were only a few years ago, are selling so well now.

Then, introducing new production lines, advanced technologies, and launching a fully upgraded "Return of the King" series to break into the high-end market will all be no problem!

For example, Wang Junshan's plan for a fully automatic pulsator washing machine for babies weighing 3 kg!

Compared to regular top-loading washing machines, it is smaller, designed specifically for mothers and babies, features a self-cleaning drum, and has a lower cost, but can be sold at a higher price. Even at 1999, it sells like hotcakes.

They're also launching a high-temperature washing function for baby and maternity use, aiming directly for the high-end market. A unit priced at 2999 yuan would be perfectly acceptable.

Unfortunately, this type of product isn't available at Haier, nor at Siemens. It's currently unavailable worldwide.

Once launched, it will be a monopoly, a high-end product, and will sell well globally!

Adding silver ion sterilization and ultraviolet sterilization, selling it for four or five thousand yuan in the last two years has no problem.

This includes wall-mounted washing machines and partitioned washing machines, all of which are currently untapped markets. Once launched, they will be game-changers.

A washing machine with separate compartments could easily sell for eight thousand.

There's no way around it; these days, even a regular Haier roller dishwasher costs four or five thousand yuan.

Selling a partitioned roller drum for seven or eight thousand is quite reasonable.

Monopoly and technology patents are the greatest forms of capital.

As for competitors following suit?
This is definitely unstoppable, but it doesn't matter.

By controlling the pace, we can produce a hit product every six months or so, and maintain a leading position.

When Haier followed suit and launched its own baby washing machine, Little Duck launched its own wall-mounted washing machine.

Six months later, Haier followed suit with wall-mounted washing machines, and Little Duck launched its silver ion sterilization feature.

When Haier followed suit with silver ion sterilization, Little Duck launched ultraviolet sterilization.

Just when Haier finally caught up with ultraviolet sterilization, Little Duck launched a two-zone washing machine...

Subsequently, three-zone, four-zone, and so on will be launched gradually.

As Haier followed suit, Future Smart Home launched its trump card: smart home technology, relying on the future mobile phone, the future OS system, the Internet of Things, and the ecosystem!

Even Haier is having a hard time.

Building an ecosystem is the most difficult thing.

In this process of following the trend, Little Duck has continuously led the times and far surpassed Haier in brand awareness and product strength, becoming the number one domestic washing machine brand and even the number one in the world.

A one-year lead allows you to enter the high-end market; a two-year lead puts you in the absolute high-end market!
Leading year after year means being among the world's best.

This applies to any industry.

“Chairman, if we bring in so many production lines, our 300-acre industrial park won’t be able to accommodate them all,” Li Ming couldn’t help but say.

Wang Junshan smiled faintly: "It's nothing. I have an appointment with Mayor Zhao to discuss the construction of the new industrial park tomorrow."

Sales of the ducklings are not a problem at all.

Currently, the technology of domestically produced washing machines is very backward, and most of them are based on imported foreign technology and production lines.

Especially the drum washing machines, which are all produced on imported production lines.

For example, the Sidduer drum washing machine production line introduced by Haier this year cost a total of 1.2 million RMB for equipment, software, and technology licensing, with an annual production capacity of 80 drum washing machines per two shifts.

With enough money, the introduction of technology, software, and equipment will boost product competitiveness, and Little Duck can easily regain its status as a top-tier brand.

Unfortunately, washing machines from 2008 were all of very poor quality.

Even Haier, Siemens, and Sanyo are all quite average.

They all rely on the production line equipment and software from those top suppliers.

As long as Wang Junshan throws money at it, none of these problems will arise.

Moreover, it also boasts a series of advantages such as mother and baby protection, wall mounting, silver ion sterilization, ultraviolet sterilization, and zoned design.

However, it takes time to introduce production lines, especially imported ones, which take about six months to arrive and about nine months to start production.

Then there's no need for everyone to crowd into the Little Duck Factory.

In seven or eight years, they will all have to be demolished.

By then, twin-tub washing machines will have been phased out long ago. When the first phase of demolition takes place, the twin-tub production line will be dismantled first and sold as scrap metal.

The domestically produced pilot-type pulsator washing machine production line to be introduced next year can be located at the Xiaoya main factory.

This kind of production line was pretty good in the past few years, but it couldn't keep up after 2013. There's no way around it; it lacks automation and has limited precision.

It was used until around 2015, when the first phase of demolition took place, and the parts were demolished and sold as scrap metal.

However, Sidduer's imported roller production line is very advanced and can be used until at least 2020.

Then there's no need to place it at the Little Duck Factory. Just apply for land in Jeju and put it in the Future Smart Home Industrial Park!
With accelerated approvals and expedited construction, the industrial park can be fully completed within six months.

When the imported roller production line arrives, it will be installed directly in the Future Smart Home Industrial Park!
Wang Junshan had a plan.

Partitioned drum washing machines are sure to be bestsellers as soon as they hit the market.

Four Dürr production lines, with an annual output of 80 units, are simply not enough.

We should start building the Future Smart Home Industrial Park as soon as possible, and increase Dürr production lines based on subsequent sales and R&D progress!

However, the listing date will be at least nine months from now.

There's no way around it; building a factory takes time, and introducing production lines also takes time.

And the same goes for mobile phones.

The pace is slower.

However, mobile phone factories can't be located in Jeju these days; the supply chain is too immature.

Wang Junshan plans to go to Shenzhen, specifically Huaqiangbei!

It has the most mature mobile phone industry chain, as well as BYD Electronics. The mature industry chain makes it suitable for building a mobile phone factory!

Upon learning that Wang Junshan was coming to invest, Mayor Zhao was in high spirits and immediately put aside all his arrangements.

A meeting was arranged the following afternoon.

"Chairman Wang, please have a seat!" Mayor Zhao said warmly.

"Chairman Wang is too efficient. Little Duck washing machines were on the verge of bankruptcy last month, with unsold inventory."

"It's only been a few days, and it's already sold out!"

"You cleared out months' worth of inventory in a single day. Now it's not only still selling well, but it's also sold out."

"Great! The Little Duck washing machine is completely revitalized!"

"No other plans for tonight? My treat, I really need to thank you properly."

"It really solved a long-standing problem for Jeju Island and the State-owned Assets Supervision and Administration Commission."

Wang Junshan smiled: "Of course I'm free when the mayor invites me."

"But while your big problem has been solved, my big problem has arrived."

"Is it due to insufficient production capacity?" Mayor Zhao laughed: "That's easy to solve. I've already discussed it with others. The Little Duck Factory will have to be demolished sooner or later anyway. Why don't we approve a larger industrial park for you?"

"Right south of the future international warehouse, we've designated five areas for you..."

Before Mayor Zhao could finish speaking, Wang Junshan excitedly interrupted, "That's wonderful, Mayor Zhao."

"To be honest, the production capacity of Little Duck washing machine's main factory is too small and simply cannot keep up with our sales."

“In the past few days, Vipshop’s Little Duck washing machine sales have been over 10,000 units per day. In other words, that’s over four million units a year.”

"With offline channels added, we have no problem selling six million units next year."

"This is still without any effort put into research and development, with outdated production lines, and with all the products being old."

(End of this chapter)